Sponge makers across India mentioned that inventory in their units is low and daily sales is more than production.
Few manufacturers from central and east India reported that at present, we don’t have any selling pressure and we are unwilling to reduce offers. We will take any decision when the miners will declare prices for Jan’16 deliveries. However, there were few manufacturers, who are selling sponge at all price level. Recently, a Bhilai based P-DRI maker sold about 500 MT at INR 12,300/MT, while, other manufacturers in Raipur had quoted at INR 12,600/MT.
Sponge iron prices in the last 15 days improved by upto INR 1,500/MT. Current offers for C-DRI are prevailing in the range of INR 12,000-13,000/MT (ex-plant; 78-80 FeM) in domestic market.
Central and east India based manufacturers are mostly selling sponge to Maharashtra and Punjab. While, south India based producers are selling the material to near by markets i.e. AP, Telangana and Tamil Nadu.
Sponge iron offers and freight of major selling markets
| Particular | 80 FeM Sponge offers | Freight | |||
| C-DRI | P-DRI | From | To | Charges by Road | |
| Ex-Raipur | 13,700 | 12,500 | Raipur | Mumbai | 1,900 |
| – | – | Jalna | 1,200 | ||
| – | – | Gobindgarh | 2,450 | ||
| Ex-Rourkela | 12,300 | 11,600 | Rourkela | Mumbai | 2,200 |
| – | – | Jalna | 2,000 | ||
| – | – | Raipur | 950 | ||
| – | – | Nagpur | 1,250 | ||
| Ex-Bellary | 12,800 | 12,100 | Bellary | Mumbai | 1,450 |
| – | – | Jalna | 900 | ||
| – | – | Pune | 1,250 | ||
| – | – | Jaipur | 3,500 | ||
| Durgapur# | 12,900 | 11,900 | Durgapur | Gobindgarh | 2,500 |
# 78 FeM prices
Prices and freight in INR/MT
Source: SteelMint Research
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